Vice President C. K. Yen has urged American businessmen to increase their investments in Taiwan.
Speaking at a New York luncheon given in his honor by the Far East-American Council of Commerce and Industry, Yen said: "I know of one electronic firm which started out with 300 workers and within several years increased employment to a peak of close to 10,000. There are others that have doubled or tripled their investment in a few years."
He said American investors supplied more than 45 per cent of the US$486 million in Taiwan foreign and overseas Chinese investments through last June.
"The great majority of the 150 American investment projects have obviously been successful," he said. "Their record of rapid expansion and growth testifies to the profitability of their investment."
He said China's low-cost, highly motivated labor is still a major attraction.
"However, the supply of such labor is not the only advantage we can offer. Other inducements include social, economic and political stability, a well-developed infrastructure, liberal tax concessions, a wide range of supporting industries, absence of labor disputes...."
Yen, regarded as one of the architects of Taiwan economic development, said neighboring countries are also developing and free Asian purchasing power is continuously on the rise. This is a fast-growing market for capital equipment and income-elastic consumer goods, he said.
China's foreign trade is increasing at a rate of about 19 per cent annually, he said. Two-way trade rose from US$426 million in 1960 to US$2,316 million in 1969.
"Our trade with the United States has been steadily on the rise," he said. "Our imports from the U.S. rose from US$102.9 million in 1960 to US$191.4 million in 1966 despite the phasing out of U.S. aid and further increased to US$333.6 million in 1969.
"Exports to the U.S. have grown from US$21.2 million in 1960 to US$111.9 million in 1966, and further to US$389.4 million in 1969.
"I foresee continued rises in Sino-American trade as well as in private American investment in Taiwan."
Chiang Ching-kuo meets investors
Vice Premier Chiang Ching-kuo, presiding at separate meetings with overseas Chinese and foreign investors in Taipei September 24 and October 1, assured them of further government assistance.
The vice premier, who is concurrently chairman of the Council for International Economic Cooperation and Development, noted the increase in overseas Chinese investment and expressed hope for continuation.
Members of the overseas Chinese group suggested:
-Permission to produce cotton garments in export processing zones and establishment of export processing factories outside the zones.
-Revision of the Statute for the Encouragement of Foreign Investments to facilitate overseas Chinese investment.
-Simplification of investment procedures and of entry and exit procedures.
-Reduction of import duties on machinery.
-Assistance to the domestic watch industry to prevent a monopoly by foreign capital.
In his meeting with foreign investors, the vice premier said efforts are being made to further simplify government screening of applications.
He also reported on the progress of projects initiated at the request of representatives of foreign-invested enterprises at. a discussion last year.
Headed by David Jones, chairman of the Taipei American Chamber of Commerce, foreign investors urged the Chinese government to:
-Strengthen the authority of the Overseas Chinese and Foreign Investment Commission of the Ministry of Economic Affairs.
-Negotiate with the U.S. government on Taiwan's export of stainless steel tableware.
-Simplify procedures governing applications for permits to install new equipment to produce electrical products.
-Relax import controls on electronic computer parts.
Jones also urged establishment of a committee of representatives from American industries in Taiwan and the Vocational Assistance Commission for Retired Servicemen to help find jobs for former servicemen.
Trade favorable for eight months
Foreign trade for the first eight months of 1970 amounted to US$1,965 million, an increase of US$487 million or 33 per cent over the same period last year.
The Board of Foreign Trade of the Ministry of Economic Affairs said exports totaled US$991 million compared with US$974 million worth of imports for a favorable balance of US$17 million.
Exports were up US$275 million and imports US$211 million.
Industrial products of US$768 million made up 77.5 per cent of the export total.
Textiles was the biggest foreign exchange earner at US$295 million, followed by machinery and electrical products, US$179 million, and plywood and furniture, US$86 million.
Import of raw materials rose to US$617 million led by machinery, electrical products, chemicals, basic metals and transportation equipment.
The United States was Taiwan's biggest trade partner. Exports to the U.S. were US$367 million and imports US$297 million for a favorable balance of US$70 million.
Sino-Japanese trade totaled US$459 million, US$147 million in exports and US$312 million in imports.
Economic plan near halfway mark
The Fifth Four-Year Economic Development Plan will pass the half-way point at the end of this year. Government is accelerating efforts to attain goals set in Dr. Sun Yat-sen's Principle of the People's Livelihood.
This last of Dr. Sun's Three Principles of the People is intended to assure economic well-being and social welfare. Current emphasis is on accelerating economic modernization to increase production, improve quality and raise the standard of living.
Investment of US$4,500 million is required for the fifth plan. A sizable part of this is going into expansion of the infrastructure.
Electric power output must be greatly expanded to serve industry. Installed capacity was raised by 811,000 kilowatts during the fourth four-year plan that ended in 1968. Another 1.5 million kilowatts will be added by 1972 at a cost of US$350 million.
Construction of the 130-meter dam of the US$56.5 million Tsengwen reservoir project in southern Taiwan started four months ago. When completed in 1973, the 17-square-kilometer reservoir will be the biggest in the Far East. Power generation will be 218 million kilowatt hours annually.
The state-owned Taiwan Power Company will invest US$2,500 million between 1970 and 1979 to raise generating capacity from the present 2,125,000 kilowatts to 7,430,000. Included will be the island's first nuclear plant, which will become operational in 1975 with output of 604,000 kilowatts.
Taiwan has been demarcated into six areas for regional construction aimed at a more balanced distribution of the population. As the most heavily populated area and seat of the central government, the north is receiving priority attention.
A round-the-island railroad is to be completed by 1975 at cost of US$135 million. The existing narrow-gauge system in the east will be widened to standard gauge.
Designing is under way for a new Taipei airport. Slated for completion in 1975, the Taoyuan field will be located and equipped to handle supersonic planes. The drive to Taipei will take only half an hour. Airports at Taipei and Kaohsiung are being expanded and modernized.
Construction of the island's fourth international seaport will get under way near Taichung in central Taiwan in 1972. The US$175 million project will be carried out in three stages over a period of nine years.
To keep up with shipping demand, the government is promoting containerization. Kaohsiung is building four container piers and is expected to become the Far East's largest container relay center.
Kaohsiung is getting a second harbor entrance to permit entry of ships of the 200,000-ton class. Ports at Keelung near Taipei and Hualien in the east are being enlarged and improved. Suao, a fishing port in the northeast, is being made into a timber transshipment center.
Until recently, Taiwan depended on foreign shipbuilders for large oceangoing vessels. The Taiwan Shipbuilding Corp. now builds 30,000-ton bulk carriers and 100,000-ton tankers. Ministry of Communications plans call for addition of 210,000 tons of vessels to the merchant fleet in five years.
Taiwan has 426 meters of highway for each square kilometer of land. This is a high figure because 70 per cent of the island is mountainous with peaks as high as 13,000 feet. A 10-year plan calls for expenditure of US$62.5 million to improve the round-the-island highway. An even bigger project will be the completion of an expressway from Keelung in the north to Kaohsiung in the south by the end of 1975.
Communications growth is rapid. Long-distance direct dialing is being extended from the Taipei-Keelung area to the rest of Taiwan. The first ground station for satellite communications is in operation.
With an infrastructure to serve the needs of industry, agriculture and people, the Republic of China confidently expects Taiwan growth in the 1970s at the 10 per cent annual figure that marked the late 1960s.
100,000-ton tanker launched by TSC
Shipbuilding entered a new era with the launching of the M. V. Yu Tsao, an oil tanker of nearly 100,000 deadweight tons built by the Taiwan Shipbuilding Corporation.
The Chinese Petroleum Corp. tanker was christened by Mrs. C. K. Yen, wife of the vice president and premier, at Keelung October 3.
The Yu Tsao is the largest ship ever built in Taiwan and third 100,000-tonner in CPC's fleet. TSC's new 100,000-ton dry dock was completed the day of the launching.
Tu Tien-ying, board chairman of TSC, and Ling Hung-hsun, board chairman of CPC, presided
CPC has asked the China Register of Shipping and the American Bureau of Shipping to inspect and rate the ship.
The vessel cost US$9.6 million, is 253 meters long and has a beam of 36.8 meters, draft of 15.15 meters and cruising speed of 16.20 knots.
The exact tonnage is 98,700 dead-weight.
The Yu Tsao set many records of the China's shipbuilding industry, including:
-Steel consumed-15,000 tons, including 3,732 sheets of steel plate and 9,669 sheets of shaped steel. The thickest steel plate used is 2.5 inches.
-Paint consumed - 165 tons.
-Electrical cables - 40 kilometers.
-Piping - 17 kilometers.
-Propeller - 23 tons.
-Main engine - 1,000 tons in weight and of 20,700 horsepower.
-Fuel consumption - 50 tons per day.
TSC can build 170,000 tons of new ships a year.
It will build two more tankers of the same tonnage for CPC. The keel of the second, to be named the Shennon, was laid last September. The third is scheduled for delivery in March, 1972.
TSC has a technical cooperation agreement with Ishikawajima Harima Heavy Industries of Japan. IHI has built two 100,000-ton tankers for CPC - the Voo Shee and the Hsuan Yuan, already in service.
TSC was a shipyard for fishing boats 10 years ago. Under the leadership of Vice Admiral Wang Hsien-teng, a leading naval architect, TSC has made giant strides in modernization and expansion.
Orders already placed with TSC by foreign and domestic consumers will keep the shipyard busy for the next three years.
Oil sought under continental shelf
The government announced October 15 that prospecting for underseas oil is in progress in five reserved offshore areas of the continental shelf in the East China Sea, including one off the Tiao Yu Tai Islands.
A spokesman for the Executive Yuan (Cabinet) said the reserved areas are bounded in the west by the coastline of the China mainland and in the east by the Okinawa Trongh.
The area extends to 22 degrees in the south and 32 degrees N. in the north.
Five reserved offshore areas have been released for prospecting. They are in the Taiwan Straits and East China Sea.
The Chinese Petroleum Corporation and American companies (AMOCO, Gulf Oil, Oceanic Exploration and Clinton International) are engaged in the prospecting.
Expo 70 brings tourism dividend
While Japanese officials rejoiced over the success of Expo 70, Chinese tourism officials were gratified by their bonus of visitors.
The Tourism Council of the Ministry of Communications said 293,000 foreign tourists visited Taiwan from March through September (the Expo period), an increase of 84,000 over the corresponding period last year.
It was estimated that Expo contributed to about 40 per cent of the growth.
Foreign arrivals in May totaled 44,726, a record for that month. The number of visitors in August was 43,227, up 52 per cent over the same month in 1969.
The Tourism Council said 37,000 overseas Chinese came from March to September, an increase of 47 per cent.
American visitors led the list of foreigners with 90,000, followed by Japanese with 85,000. The number of Japanese visitors did not drop despite Expo.
Tourists spent an average of US$33 per day and each stayed an average of five days.
An estimated 30,000 Chinese of Taiwan visited Expo.
Visitors to the Japanese fair were offered information and assistance for Taiwan visits.
Australian trade continues to climb
Trade with Australia in fiscal 1970 ended June 30 totaled US$51,251,200, the Commercial Counselor's Office of the Australian Embassy in Taipei reported September 20.
This was an increase of US$8,464,960 over fiscal 1969.
Australia's exports to Taiwan amounted to US$33,480,160, up 13 per cent. Australia bought US$17,771,040, from Taiwan, up US$13,201,440 or 35 per cent.
The report cited these figures for Taiwan exports to Australia: FY 1966, US$4,782,000; FY1967, US$5,377,120; FY1968, US$9,620,800; FY1969, US$13,201,440; and FY1970, US$17,771,040.
Australia's main exports to Taiwan are wool, grain, butter, milk powder, iron, steel and nonferrous metals.
Taiwan's top exports to Australia are textiles, clothing, wood products and canned vegetables.
Swiss paper finds Taiwan doing well
The Republic of China has become the strongest economic power in the Far East after Japan, according to Franz Theodor Zolch, writing in the German-language Der Landbote of Zurich.
Zolch's article in the October 6 issue reviewed the ROC's rapid transition from status of aid receiver to aid giver.
Of free Chinese technical assistance to the Ivory Coast, Zolch said:
"A team consisting of 160 persons is successfully cooperating with local farmers in 24 different areas. Moreover, 585 natives, among them 20 agriculturists trained in Taiwan, are working under the direction of Chinese experts in extension districts.
"Chinese experts are mainly concerned about improving rice cultivation. In fact, a country that until 1963 had to import 250,000 metric tons of rice annually already has reduced the figure to 25,000 tons and in three years will be able to export rice although the population has been increasing rapidly."
Latin America also appreciates the helping hand of free Chinese agricultural experts, Zolch said. Examples of cooperation with Panama, Jamaica, Ecuador and Peru are given.